Focus: WHO woes and EU’s proposed additional rescue package

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Updated 19 May 2020
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Focus: WHO woes and EU’s proposed additional rescue package

What happened:

Markets rallied on three pieces of news and one shift in fundamentals. The S&P 500 was up by 3.2 percent, reaching its highest level since early March. The Hang Seng and the TOPIX were up 2.1 percent and 1.7 percent, respectively.

US Federal Reserve chair Jerome Powell reaffirmed that the Fed would use the full range of tools to deal with the recession and that interest rates would stay close to zero until the economy is back on track. French President Emmanuel Macron and German Chancellor Angela Merkel proposed a €500 billion package to be processed through the EU budget. Moderna reported positive results in early testing of its COVID-19 vaccine. The company hopes to enter phase three of clinical tests in July. Moderna shares soared. Health-care analysts warn that these are early days in terms of drug development.

Oil markets seem to be over the worst, because supply has contracted sharply due to massive cuts and demand growth exceeded expectations, as economies come out of lockdown. On May 10 the WTI June contract will expire. There is currently no danger of WTI turning negative, as it did wen the May contract expired on April 20.

US President Donald Trump threatened to make permanent the current temporary freeze of US contributions to the World Health Organization (WHO), unless the organization reformed within 30 days as well as canceling US membership.

UK employment numbers for first quarter showed job gains of 50,000. The unemployment rate was 3.9 percent, reflecting that UK only went into lockdown at the end of March. In April, 856,500 people filed for jobless claims, which indicates that many employers did not take advantage of the country’s work support scheme opting to fire staff rather than furlough them.  

Background:

President Trump has voiced his discontent with the way China and the WHO handled the coronavirus outbreak many times. However, there might be more than the progression of the US-China rivalry and election soundbites behind US discontent with the WHO.

On Monday, China’s President Xi Jinping addressed the WHO general assembly and pledged $2 billion in aid to the pandemic health response. He stressed that any COVID-19 vaccines be made available to all and advocated for the preservation of international supply chains. The latter is in China’s national interest given the country’s pre-eminence in the pharmaceutical supply chains.

Making a vaccine available touches on intellectual property and pricing. The US, along with the UK, Switzerland and Japan, is concerned about the WHO’s so-called 2001 Doha Declaration whereby governments can overrule intellectual property rights in a public health emergency. The pharmaceutical and biotech industries contribute significantly to the gross domestic product (GDP) of the aforementioned countries and they would like to rely on voluntary measures instead of the Doha Declaration.

Macron and Merkel agreed to support a €500 billion coronavirus relief package. Funnelled through the EU budget, it will be distributed in the form of grants rather than loans, which is important when calculating the debt-to-GDP ratios in southern rim countries.

This is new money and the EU Commission could use its AAA rating to raise the funds on the international bond markets. The repayment obligation would be shared by all 27 EU member states.

It is significant that the EU’s two largest economies collaborated on the proposal and that fiscally prudent Germany stands behind it. Merkel emphasised the need for action, saying: “There is a risk that the EU’s cohesion will be endangered by the economic effects of this virus.”

The package will have to be discussed among the EU 27. Austrian Chancellor Sebastian Kurz has already voiced criticism and the Netherlands as well as other fiscally prudent northern countries may follow suit, fearing that the proposal was too close to the mutualization of debt and might lead to common fiscal frameworks. Do not expect passage of the package to be uncontested or easy.

Where we go from here:

The UK Department of International trade announced its post-Brexit tariff plan. Zero percent on imports would come in tariff free as opposed to a current 47 percent. A total of £30 billion of tariffs on supply chains would be removed.  A 10 percent tariff on cars as well as protection for agricultural goods would remain. The government will remove items on goods promoting a green economy.

— Cornelia Meyer is a Ph.D.-level economist with 30 years of experience in investment banking and industry. She is chairperson and CEO of business consultancy Meyer Resources.
Twitter: @MeyerResources


US recalls top diplomat in Colombia for ‘urgent consultations’

Updated 7 min 52 sec ago
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US recalls top diplomat in Colombia for ‘urgent consultations’

  • Bruce said the United States “is pursuing other measures to make clear our deep concern”
  • Petro claimed a far-right “leader,” had spoken to US Secretary of State Marco Rubio

WASHINGTON: The United States recalled its top diplomat in Colombia on Thursday for “urgent consultations” and expressed “deep concern” over the relationship between the two countries.

Charge d’affaires John McNamara was being recalled “following baseless and reprehensible statements from the highest levels of the Government of Colombia,” State Department spokeswoman Tammy Bruce said in a statement.

Bruce did not specify what the offending remarks were.

In addition to McNamara’s recall, Bruce said the United States “is pursuing other measures to make clear our deep concern over the current state of our bilateral relationship,” without detailing the actions.

She stressed, however, that Colombia remains an “essential strategic partner” despite Washington’s “policy differences with the current government.”

“We are committed to close cooperation on a range of shared priorities, including regional security and stability,” Bruce added.

Colombia’s leftist President Gustavo Petro accused the United States and “right-wing extremists” last month of plotting to overthrow him.

Without providing further details, Petro claimed a far-right “leader,” who he did not identify, had spoken to US Secretary of State Marco Rubio.

Colombia leftist government also recently refused a US request to extradite two prominent guerrilla leaders wanted by Washington for drug trafficking.

Colombia was until recently one of the United States’ closest partners in Latin America.


From Grand Slam to grand struggle, Krejcikova lives to fight on

Updated 27 min 28 sec ago
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From Grand Slam to grand struggle, Krejcikova lives to fight on

  • There was zero champion’s polish on show as the Czech creaked her way into the third round
  • The pair exchanged errors and breaks of serve throughout

LONDON: Barbora Krejcikova’s Wimbledon defense is still alive — but only just. The Czech squeezed past American Caroline Dolehide 6-4 3-6 6-2 in a second-round tussle that was all grind and no grandeur.
There was zero champion’s polish on show as the Czech creaked her way into the third round, surviving a match as scrappy as a Henman Hill picnic after a seagull raid.
“A huge relief,” she said afterwards to polite applause from the crowd. “Really up and down points, turning one way and the other ... I am so grateful I can keep going.”
Court Two spectators, many blissfully unaware that they were watching the reigning champion, might be forgiven — Krejcikova herself barely looked the part.
A season dogged by back and thigh niggles has left the 29-year-old short of sharpness, and her patchy 4-3 record for the season coming in was on full display in a match strewn with errors.
Spraying foreheads wide of their mark and dumping backhands into the net, nothing suggested a twice Grand Slam champion was holding court.
At times the contest resembled less a Grand Slam match and more a practice session between two very rusty players — Krejcikova produced 39 unforced errors, while Dolehide got fewer than half her first serves in all match.
The pair exchanged errors and breaks of serve throughout — Dolehide trying to power her way into the contest while Krejcikova sought to claw her way to victory on the back of slow, sliced forehands whispering back to a gentler age.
Scarcely can a champion have produced such a lukewarm performance on the Grand Slam stage but it would be fair to say the Czech blows hot and cold on the tennis court.
French Open champion in 2021, she has followed that title run with three first-round defeats and one second round showing at Roland Garros in the years since.
Her form can read like a nursery rhyme. When she’s good, she’s very, very good — Grand Slam good. But when the gears don’t quite catch, when timing slips or confidence wavers, she can unravel just as spectacularly.
As Henry Wadsworth Longfellow, 19th-century American poet and nursery rhyme writer, had it: when she is good, she is very, very good — but when she is bad, she is horrid.
Still, the 17th seed did just enough to scrape through to gentle applause and a sterner test ahead: 10th seed Emma Navarro, who won’t be quite so generous. (Reporting by Ossian Shine; Editing by Christian Radnedge and Ken Ferris)


Producer of dropped BBC Gaza documentary says broadcaster tried to gag him

Updated 51 min 2 sec ago
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Producer of dropped BBC Gaza documentary says broadcaster tried to gag him

  • In a post on LinkedIn, Ben de Pear said he declined to sign the BBC ‘double gagging clause’ multiple times
  • The corporation shelved ‘Gaza: Doctors Under Attack’ amid widespread criticisms over controversial decision

LONDON: The executive producer of a shelved BBC documentary on Gaza has accused the corporation of attempting to silence him over its controversial decision to pull the film.

Ben de Pear, former editor of Channel 4 News and executive producer of “Gaza: Doctors Under Attack,” said he was repeatedly pressured to sign what he called a “double gagging clause” that would have barred him and others from speaking about the BBC’s decision to drop the film.

“I rejected and refused to sign the double gagging clause the BBC bosses tried multiple times to get me to sign,” de Pear wrote in a LinkedIn post.

“Not only could we have been sued for saying the BBC refused to air the film (palpably and provably true) but also if any other company had said it, the BBC could sue us.

“Not only could we not tell the truth that was already stated, but neither could others. Reader, I didn’t sign it.”

Describing the film’s production as a “painful journey,” de Pear previously accused Tim Davie, BBC’s director general, of taking editorial decisions he was not qualified to make.

“All the decisions about our film were not taken by journalists, they were taken by Tim Davie,” he said at conference in Sheffield. “He is just a PR person. Tim Davie is taking editorial decisions which, frankly, he is not capable of making.”

He accused the BBC of “failing as an institution,” calling for Davie and the corporation’s senior leadership to step down.

While the BBC has not officially responded, The Guardian reported that sources close to the matter denied the broadcaster tried to gag de Pear.

One insider said the request was a standard clause requiring producers to seek BBC approval before promoting its content — a claim disputed by de Pear’s company, Basement Films.

The controversy comes amid broader criticism of the BBC’s handling of Gaza-related coverage.

This includes backlash over its decision to drop “Gaza: Doctors Under Attack” because it “risked creating a perception of partiality,” its refusal to broadcast a performance by Irish rap trio Kneecap — one member of whom faces terror charges — and its failure to interrupt the Glastonbury live feed featuring anti-Israel chants by punk-rap duo Bob Vylan.

On Wednesday, over 400 media professionals — including 111 BBC journalists — signed an open letter accusing the BBC of acting as “PR for the Israeli government” and calling for the removal of BBC board member Robbie Gibb, citing conflicts of interest and editorial bias.

The letter also questioned Gibb’s alleged role in the BBC’s decision to drop the Gaza documentary.

Before pulling “Gaza: Doctors Under Attack” entirely, the BBC said it had delayed the film’s broadcast pending a review of another program, “Gaza: How to Survive a Warzone.”

Channel 4 ultimately aired “Gaza: Doctors Under Attack” on Wednesday night to critical acclaim.


European climbers complete rare alpine-style ascent of Nanga Parbat’s deadly Rupal face

Updated 53 min 50 sec ago
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European climbers complete rare alpine-style ascent of Nanga Parbat’s deadly Rupal face

  • German climber David Göttler paraglided from near the summit in a daring solo descent
  • Nanga Parbat is infamous for its high fatality rate, earning it the nickname ‘Killer Mountain’

ISLAMABAD: Three European climbers achieved a rare feat on one of the world’s most dangerous peaks, scaling the treacherous Rupal face of Nanga Parbat in alpine style, with one of them paragliding down from near the summit in a daring solo descent earlier this week.

German climber David Göttler was joined by French mountaineers Tiphaine Duperier and Boris Langenstein for the climb via the Schell route, a steep and rarely successful line up the mountain’s massive southern wall. The Rupal face, rising nearly 4,600 meters from base to summit, is considered the world’s highest mountain face and among the most technically demanding.

“Sometimes you need to be patient … It’s taken five attempts, but now that I’ve achieved it, I know it’s all been worthwhile,” Göttler wrote in a social media post on Tuesday, describing his 12-year pursuit of the route.

He said summiting with his teammates in alpine style was “incredible,” and added that being able to fly down from around 7,700 meters to base camp in the same day took his joy “to the next level.”

Unlike traditional expedition climbing, alpine style involves climbing in a single push without establishing fixed ropes or pre-stocked camps, requiring climbers to carry all their gear. The approach demands speed, efficiency and a high degree of skill, especially at high altitude.

“It’s been a long time since an expedition has successfully summited from the Rupal side,” Naiknam Karim, CEO of Adventure Tours Pakistan, which facilitated the expedition’s logistics, told Arab News over the phone. “Normally, people climb from the Diamir face.”

“What makes this climb special is that they did it in alpine style ,” he continued. “What’s even more remarkable is that Göttler paraglided down from the summit. So, that’s his special achievement.”

Nanga Parbat, the world’s ninth-highest peak at 8,126 meters, is infamous for its difficulty and high fatality rate, earning it the nickname “Killer Mountain.”

Over 100 climbers and porters have died on its slopes, with the Rupal face considered particularly unforgiving due to avalanche risk and exposure to extreme weather.


Wildfires kill two in western Turkiye, little-known group claims arson attacks

Updated 52 min 2 sec ago
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Wildfires kill two in western Turkiye, little-known group claims arson attacks

  • The latest casualty was a backhoe operator, Ibrahim Demir, who died while battling the flames in the Odemis district
  • A group calling itself “Children of Fire” claimed responsibility

ISTANBUL: A wildfire killed a second person in Türkiye’s western Izmir province on Tuesday as blazes raged for a seventh day across several regions, while a little-known group claiming ties to Kurdish militants said it was behind dozens of arson attacks.

The latest casualty was a backhoe operator, Ibrahim Demir, who died while battling the flames in the Odemis district, the state-run Anadolu news agency said.

Earlier, an 81-year-old bedridden man who was home alone in the same area died when fire reached his house, marking the first death since the fires began.

A group calling itself “Children of Fire” claimed responsibility for “tens of fires across six Turkish cities”, according to a statement shared online.

The group, which is little known, says it is affiliated with the outlawed Kurdistan Workers Party (PKK), designated a terrorist group by Türkiye, the United States and European Union. The PKK, which said in May that it was ending a 40-year insurgency and disbanding, has not commented on the claim.

Firefighters continued to battle flames with helicopters and planes dropping water over mountainous terrain in Izmir, while authorities closed some roads to the Aegean resort town of Cesme, Anadolu said.

Broadcasters showed footage of flames lining the main highway as water tankers arrived.

Türkiye, Greece and other countries in the Mediterranean are in an area scientists dub “a wildfire hotspot” — with blazes common during hot and dry summers. These have become more destructive in recent years due to a fast-changing climate.

Wildfires across Türkiye’s west have damaged around 200 homes and victims have been provided alternative accommodation, Interior Minister Ali Yerlikaya said. Some 50,000 people were temporarily evacuated earlier this week from areas of fires fueled by high temperatures, low humidity and strong winds.

New fires also broke out on Thursday in the southern resort province of Antalya and in forested areas near Istanbul, Türkiye’s largest city, Anadolu said. Authorities have managed to contain several of the blazes.